Pakistan's main Karachi bourse on Friday reluctantly decided to unfreeze itself by October 27 only if the government fixes a cap on interest rates on loans taken by top brokers, sources said, according to dpa. "The decision to unfreeze is only tentative. We are watching the government to see if it will inject money into the market and put a cap on interest rates," Akeel Karim Dhedhi, chairman of local giant AKD Securities told Deutsche Presse-Agentur dpa. The Pakistani stock market, roiled by domestic political instability and economic turmoil, has been virtually closed for the last two months after losing almost 50 per cent in value since May. Among the major reasons for the decline is a bleak investment scenario due to growing Islamic insurgency in North West Frontier Province (NWFP), a spate of suicide bombings across the country, and mounting tensions between NATO forces and the Afghan government. --More
